Class IX
Commercial Studies Project Topic
1. Prepare a project report on-"Nature and types of Industries".
State clearly-
-Meaning of Industry.
- Types of Industries:
(i) On the basis of activity.
(ii) On the basis of size.
- Role of small scale industries in
India
Answers
A project report on business. This report will help you to learn about:- 1. Meaning and Definitions of Business 2. Essential Characteristics or Elements of Business 3. Objectives 4. Classification 5. The Concept of Social Responsibilities 6. Essential Requisites for Success of Business.
Contents:
Project Report on the Meaning and Definitions of Business
Project Report on the Essential Characteristics or Elements of Business
Project Report on the Objectives of Business
Project Report on the Classification of Business
Project Report on the Concept of Social Responsibilities of Business
Project Report on the Essential Requisites for Success of Business
1. Project Report on the Meaning and Definitions of Business:
In broad sense, business includes industry, commerce and trade. Its main aim is to increase wealth. Industry means a place where materials are extracted or converted into finished or semi-finished products. Trade means a process of buying and selling of commodities, while commerce relates to financial, transportation, insuring and allied activities.
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The form of organisation will be decided by various factors, such as:
1. Size and nature of the business to be started;
2. Technical difficulties;
3. Market conditions (i.e., competition and scope of the article in the market);
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4. Capital required to start the business and the means to collect the funds;
5. Limitations and restrictions put forth by the government (i.e., grant of loan, licence, foreign exchange and other such things).
Definitions of Business:
Business may be defined as “an activity, in which different persons exchange something of value whether goods or service for mutual gain or profit.”
It may also be defined as “an enterprise engaged in production and distribution of goods for sale in market or rendering services for a price.”
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2. Project Report on the Essential Characteristics or Elements of Business:
The following are the essential characteristics of business:
(i) Element of Enterprise:
The element of enterprise exists in every business. The person who recognises the need for a product or service is known as an ‘entrepreneur’. The entrepreneur is an important factor in the process of economic growth. It is the entrepreneur who visualises a business, combines different factors of production and puts them into a going concern.
(ii) Element of Exchange of Goods and Services:
Business activity aims at transfer of goods and services. The exchange of goods and services is undertaken with a ‘profit motive’. Any activity done to satisfy oneself cannot be known as business. For example, a tailor who stitches his own pant, is not paid for this. On the other hand, if he stitches pants for others in exchange of money, it can be included in business activity.
(iii) Profit Motive:
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The motive of profit is an essential characteristics of business. Any human activity undertaken without profit motive cannot be included in business. The incentive of earning profits keeps a person in business and is also necessary for the regularity and continuity of the business. This motive has, therefore, played a very important role in the establishment, running and expansion of business.
(iv) Element of Risk and Uncertainty:
The element of risk and uncertainty exists in every business. The factors on which business depends are quite uncertain. The success of a businessman depends upon his correct forecasting’s, otherwise he may be forced out of the business. Hence, the risk element in the business keeps the businessman vigilant.
(v) Economic Activities:
Only economic activities are covered in the business. Economic activities are those activities which are related to the production and distribution of goods and services. These activities are undertaken with economic motive. Any activity undertaken without economic motive will not be included in the business.
INDUSTRY:-
Industry refers to an activity which converts raw material into useful products. Industry includes activities related to production and processing as well as activities related to rearing and reproduction of animals or other living species.
The purpose of industries to create form utility by converting raw materials into useful forms of finished products.
The term Industries also used to refer to a group of forms producing similar or related goods. For example, Textile industry refers to all the production units related to cloth manufacturing, Cement industries refers to all the firms manufacturing cement.
Industry can be classified into three broad categories:-
PRIMARY INDUSTRY
Primary industry include all those industries which are concerned with extraction of natural resources and Reproduction of living species.
These industry mies can further be classified into two categories:-
- Extractive industries
- Genetic industries
SECONDARY INDUSTRY
The secondary industry makes use of products which are extracted and produced by primary industry as their raw materials and produce finished goods. For example, mining of iron ore is done in primary industry but steel manufacturing is done in secondary industry.
There are 2 kinds of secondary industry:-
- Manufacturing industry
- Construction industry
TERTIARY INDUSTRY
Tertiary Industries concerned with providing services with facilitate or smooth flow of goods and services. This industry helps in the activities of the primary and secondary industry. In other words, this industry provides services which support the activities of primary and secondary industry, that is why it is also known as service industry. This various types of services provided by tertiary industry are:-
- Transport
- Banking
- Insurance
- Warehousing
- Advertising